Whoa! Skidding Lower …..

Global Liquidity Update (Full Monthly Data)

Our Global Liquidity Index (GLI) fell back to 16.5 (normal range 0-100) at end-July, 2023, from 20.9 in June. Liquidity measures the flow of cash savings and credits through World financial markets, and essentially show how easy it is to paydown debts. This July setback gives the lowest reading since January. The fall is largely down to weaker Private Sector Liquidity (25.0 from 31.5) and weaker Cross-border Flows (44.4 from 56.9). Central Bank Liquidity admittedly also fell back a tad (21.0 from 23.6), but this was mostly down to tighter Chinese PBoC liquidity (74.3 from 83.2) and a small slip in US Fed Liquidity (24.0 from 26.1). Elsewhere most other Central Bank liquidity indexes were essentially unchanged on the month. See table below.